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Bill Wants to Buy a New Boat in 7 Years

Question 22

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Bill wants to buy a new boat in 7 years.He expects the new boat will cost $28,000.Bill has $18,000 in an investment account today.What rate of return must Bill earn on his investments to be able to buy the boat on time?

Correct Answer:

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6.515% (FV = $28,000...

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